As you can see I have marked a level of net short positioning for oil traders, as well as added the oil line chart as an overlay to the comittment of traders report data indicator so you can see what happened the last time commercial hedgers' net short positions reached these levels.
I anticipate downtrend continuation naturally, and as you can see, this pair is a good alternative to outright shorting oil , and if you factor in pips instead of % distance, it can outperform the oil shorts, with potentially lower risk (considering the way the chart's setup).
As a sidenote, commercial traders are now net short the Swiss Franc , which is good incentive too. (They have been wrong in the Yen, but large specs have captures all major moves in it and are net long and increasing longs currently).
Entry is either a new daily low, or a retracement to the red triangle tip with stops above the red line or using 1 to 3 times the daily ATR value.
If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.